Small Business Loans
The purpose of the DCLF and Detroit Development’s small business lending program has been to support the growth of Detroit-based business, particularly those owned by entrepreneurs of color and by women. It targets small businesses with growth potential and management insight that lack sufficient collateral or owner equity to qualify for financing from mainstream lenders.
Criteria, Loan Size and Terms
TO QUALIFY FOR A SMALL BUSINESS LOAN, A BUSINESS SHOULD MEET THE FOLLOWING CRITERIA:
- Business must be located in the City of Detroit
- Have annual sales of at least $100,000; and have fewer than 50 employees
- Have been in existence for at least 12 consecutive months
- Have demonstrated growth potential; and have the ability to continue to grow and retain or add new jobs
- Have been unable to obtain sufficient financing from traditional lending sources
- Small business loan amounts range from $50,000 to $150,000
- Most loans will have terms of 24 to 84 months, depending on use of funds.
**Exceptions may be made to the length of time in business and annual sales criteria for franchises, or in other situations approved by the loan committee.
Use of Proceeds
DETROIT DEVELOPMENT’S SMALL BUSINESS LOAN PROCEEDS CAN BE USED FOR MOST BUSINESS PURPOSES, INCLUDING THE FOLLOWING:
- Working capital for expansion
- Equipment financing
- Accounts receivable financing
- Business acquisition
- Marketing/New product development
- Sales expansion
- Physical plant expansion
- Improvements to manufacturing systems…and more